Alerus Financial Corporation - ALRS STOCK NEWS

Alerus Financial (Nasdaq: ALRS) announced key leadership changes. Jon Hendry, Executive Vice President and Chief Technology Officer, will retire at year end after 40 years with the company. Karin Taylor, who joined as Chief Risk Officer in 2018, will become Executive Vice President and Chief Operating Officer effective January 1, 2025, overseeing risk management, regulatory compliance, legal, internal audit, operations, and information technology.

Joe Birkholz has joined as Chief Risk Officer, bringing nearly 20 years of industry experience, including previous roles as Chief Risk Officer at Bridgewater Bank and Senior Director of Risk Operations at TCF Financial

Alerus Financial (ALRS) reported Q3 2024 net income of $5.2 million, or $0.26 per diluted share, down from $6.2 million in Q2 2024 and $9.2 million in Q3 2023. The company completed its largest acquisition, expanding into Rochester and Southern Minnesota markets. Total loans increased 9.9% to $3.0 billion, while deposits grew 7.4% to $3.3 billion from December 2023. Noninterest income represented 55.7% of total revenues at $28.4 million. Assets under administration/management reached $45.6 billion, up 4.8% from Q2 2024. Net charge-offs to average loans were 0.04%, and tangible book value per share increased 6.7% to $16.50.

Alerus Financial (Nasdaq: ALRS) has completed its acquisition of HMN Financial, Inc. (Nasdaq: HMNF) in an all-stock transaction valued at approximately $128.8 million. This acquisition, Alerus' largest bank acquisition to date, expands its footprint into Rochester, Minnesota. Home Federal, founded in 1934, brings 12 branches in Minnesota and one each in Iowa and Wisconsin.

As of June 30, 2024, HMNF had $1.1 billion in total assets, including $876.6 million in loans and $983.2 million in deposits. With this addition, Alerus now has approximately $5.5 billion in total assets, $3.8 billion in loans, $4.3 billion in deposits, and $43.6 billion in assets under administration and management across 29 locations.

The integration of Home Federal client accounts into Alerus systems is expected in Q4 2024. Jeffrey Bolton, former HMN Financial board member and ex-Mayo Clinic CAO, has joined Alerus' board of directors.

Alerus Financial (Nasdaq: ALRS) has announced that it will release its third quarter financial results on Tuesday, October 29, 2024. The company will also host a conference call on Wednesday, October 30, 2024, at 11:00 a.m. Central Time (12:00 p.m. Eastern Time) to discuss these results.

Analysts and institutional investors are invited to participate in the question-and-answer session. Attendees are encouraged to register in advance for the call. The conference call can be accessed by telephone at 1-833-470-1428 with access code 572067. A recording of the call and transcript will be made available on the company's investor relations website following the call.

Alerus Financial (Nasdaq: ALRS) and HMN Financial, Inc. (Nasdaq: HMNF) have received all necessary regulatory approvals and stockholder approval to proceed with their merger. The acquisition is expected to close in early Q4 2024, subject to customary conditions. Key points:

• All-stock transaction unanimously approved by both companies' boards
• Stockholders approved the merger on September 12, 2024
• Post-merger, Alerus will have ~$5.5B in total assets, $3.7B in loans, $4.3B in deposits, and $43.1B in assets under administration/management
• Alerus will expand its footprint with 14 new branches across Minnesota, Iowa, and Wisconsin
• Total branch count will increase to 29 locations throughout the Midwest and Arizona

Alerus Financial (NASDAQ: ALRS) has announced a regular quarterly cash dividend of $0.20 per common share, representing a 5.26% increase compared to the previous year. The dividend will be payable on October 11, 2024, to stockholders of record as of close of business on September 13, 2024. This decision was made by the company's board of directors on August 20, 2024. Alerus provides access to current and historic dividend information, quarterly financial statements, investor presentations, and earnings call transcripts through its investor relations website at investors.alerus.com.

Alerus Financial (Nasdaq: ALRS) announced a net income of $6.2 million for Q2 2024, or $0.31 per diluted share. This compares to $6.4 million, or $0.32 per share, in Q1 2024, and $9.1 million, or $0.45 per share, in Q2 2023.

CEO Katie Lorenson highlighted a 48% improvement in pre-provision net revenue, driven by a 8% sequential increase in overall revenues, improvement in net interest margin, and prudent expense management.

Key metrics include:

• Total deposits of $3.3 billion, up 6.6% since Dec 31, 2023
• Total loans of $2.9 billion, up 5.7% since Dec 31, 2023
• Net interest margin of 2.39%, up from 2.30% in Q1 2024
• Noninterest income of $27.4 million, up 8.1% from Q1 2024
• Allowance for credit losses stable at 1.31%
• Common equity tier 1 capital ratio at 11.67%

Despite these improvements, net income has declined compared to both the previous quarter and year, and there was an increase in nonperforming assets driven by a significant commercial real estate loan moving to nonaccrual status.

Alerus Financial (Nasdaq: ALRS) will release its second quarter financial results on Wednesday, July 24, 2024. A conference call to discuss these results will take place the following day, Thursday, July 25, at 11:00 a.m. Central Time.

Analysts and institutional investors can participate in the call's Q&A session. Pre-registration for the call is encouraged. The conference call can be accessed via a dedicated URL and phone number, with a recording and transcript to be made available afterward on the company's investor relations website.

Alerus Financial (Nasdaq: ALRS) has announced the expansion of its specialty lending capabilities by adding an experienced team focused on providing equipment financing to its commercial banking clients. Brian Scott, with over 25 years of experience, joins as managing director and will oversee the team's activities. Daniel Littlefield, with over 20 years of experience, will serve as a senior credit officer, specializing in underwriting and portfolio management. Michael Ryan, also with over 20 years of experience, joins as the operations manager, responsible for developing processes and overseeing operations. Alerus' President and CEO, Katie Lorenson, emphasized that the new team will help expand the bank's business and commercial banking segment, offering opportunities to deepen relationships with existing clients and attract new ones. The team will be based in Phoenix and support Alerus' commercial bankers across its geographic footprint.